The EUR/USD pair was somewhat stable on Wednesday as the US dollar index rose and fell through the day. The US dollar index fell to 96.00 as risk in the market increased, although the price recovered slightly in the US session.
The price of yesterday’s EUR/USD pair rose to a four-hour Quasimodo resistance at 1.1449 from the 1.14 handle. However, due to that resistance, the price fell again to 1.14, followed by four-hour support 1.1383.
Meanwhile, in the weekly time frame, we can see that the price has recently risen above the long term trend line resistance starting from a high of 1.2555 and has merge with the opening level of 1.1445 in 2019. Looking at the full trend, it is understood that the market will continue to decline until it crosses the March 9 high of 1.1495.
Looking at the price in the daily time frame, it is understood that the pair is above the channel resistance starting from the high 1.1147, and moving around the 161.8% Fibonacci extension point 1.1464. Candlestick traders will notice that the pair ended the day with a shooting star pattern yesterday.
The bullish situation in the weekly and daily time frames is expected to help keep the euro in a profitable position even in the four-hour time frame. A four-hour closing above 1.14 will target the 2019 opening level of 1.1445, followed by a four-hour Quasimodo resistance of 1.1449 and a 161.8% Fibonacci extension point of 1.1464.
Traders taking sales from weekly resistance are now facing four-hour support of 1.14 and 1.1383. Breaking this level will push the market further down and target daily support at 1.1349 and four-hour support at 1.1345.